The famous “plastic” brand filed for bankruptcy
The American brand Tupperware, which produces plastic containers for food and drinks, filed for bankruptcy due to a significant decrease in sales.
This company announced that they will seek court permission to start selling the brand and that their goal is to continue working. The company with a 78-year tradition has become synonymous when talking about any plastic container for food and drinks.
Despite efforts to improve their products and position themselves among younger consumers, they failed to differentiate themselves from the competition. Last year, they warned that they could go bankrupt if new funding is not raised quickly. The value of Tupperware’s shares fell by 50 percent this week, after it was announced that it was planning bankruptcy.
A short-term increase in sales of this brand’s products occurred during the coronavirus pandemic, when many people cooked at home. This was followed by a decrease in sales. The rise in the prices of raw materials, the rise in wages and transport costs had a negative impact on profit.
“The challenging macroeconomic environment has had a serious impact on the company’s financial position over the past several years,” Tupperware CEO Laurie Ann Goldman said in a statement to investors.
Tupperware is a company founded in 1946 by Earl Tupper and its products were a great innovation. Namely, that’s when plastic started to be used to keep food fresh for as long as possible, which was invaluable when refrigerators were too expensive for many. It turned out that it was not a short-term success.
Saleswoman Brownie Wise contributed to making the brand synonymous with the household. She developed an approach where salespeople, who were mostly women, sold products to other women in their homes. Their products are currently sold in 70 countries around the world.
Source: Klix
Photo: unsplash
Source: bizlife.rs
